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Consumers more reluctant to spend

Consumers are slightly more cautious with their money in the new year, but sales growth trends remain healthy.

Spending grew 0.6 per cent in January, seasonally adjusted, according to Commonwealth Bank's business sales indicator (BSI), which tracks the value of card transactions on the bank's merchant facilities.

It follows a rise of 0.9 per cent in December, and takes annual spending growth from 7.4 per cent to 7.6 per cent.

The more stable trend estimate has been modestly declining, but remains in line with the decade average.

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CommSec chief economist Craig James said businesses should not be too alarmed by slowing growth.

"It follows solid gains in 2015," he said.

"Although businesses would have liked to see a more positive start to the year, particularly in the retail sector, consumer confidence remains high and interest rates remain at record lows."

Mr James also said business lending in 2015 was not far off the record highs set during the mining boom, showing businesses remain optimistic.

Though retail spending growth dropped to its slowest rate in 28 months in January, there was solid gains in the business and government sectors.

Six of 19 industries fell in trend terms in January, including airlines, clothing, transport and entertainment.